Borrow money

Ritesh Rathod (Querist) 13 April 2016 This query is : Resolved
Dear sir, I borrow 2.5 laks from my friend at a rate of 5 perc. But he execute one agreement stating that I borrow 4 laks for doing business and borrower will pay the said amount with in 6 month. After 1 yrs now he demand for 6 lakh and I m ready to pay 2.5 as that I actually borrow.
Advice me. Creditor threaten me by saying that he file a sue I m a govt. Employee. Plz help me out

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r.sathyanarayanan (Expert) 13 April 2016
You have done mistake. you issue him a notice describing the back ground stating that you only taken 2.5 lakhs.
Look it also from the side of govt staff conduct rules.

Sudhir Kumar, Advocate (Expert) 14 April 2016
did you intimate the transaction to your deptt?

Sudhir Kumar, Advocate (Expert) 14 April 2016
Money given to friends and relatives is always a charity in the garb of loan which is given in expectation of refund but always taken with intention of non-refund.

Such loan is taken by a person:-

(i) Who lacks business sence and cannot raise funds out of his own business and suddenly wants to be rich.

(ii) who cannot raise bank loan because :-

Either
he himself is not creditworthy

Or
the purpose for which he seeks loan is illegal

or
the purpose for which he seeks loan is not at all commercially viable.

(iii) Who knows he can afford not to refund.
(iv) Who trusts his thick skin
(v) Who intends not to refund
(vi) Who has made fortification against action of refund.

So he has to find someone who can part with his money. SO he finds a lender near him (fiend or relative)

Such loans are given by the persons :-

(i) Who has surplus money.
(ii) Who displays and boasts of such surplus money.
(iii) Who stupidly believe that there will be a refund.
(iv) Fails to realise as to why he alone (not bank) is being contacted for loan.
(v) Who has extreme trust on the debor
(vi) who are either stupid or extremely greedy of the unusual (or illegal) rate of interest.

Such loans are always given

(i) Without documentation.
(ii) Without witness
(iii) Without guarantor.

Business started by such money (easy money belonging to other) invariably fails.

Such loans always sink and not refunded.

P. Venu (Expert) 14 April 2016
You can return the money actually borrowed with the interest under proper acknowledgement. If he moves court, the onus rests with him in proving his averments.

Sudhir Kumar, Advocate (Expert) 14 April 2016
No you have to return the money as per agreement, if the suit is not time barred so far.

Rajendra K Goyal (Expert) 14 April 2016
Try to have amicable settlement.

If he goes to court, you can raise objection of, not a professional lender, very high rate of interest etc. after discussion with your lawyer.

If the money was not through Banking channel and he is unable to show source / accounting of 4 lacs, may lodge complaint with Income Tax Department, if he file case.

malipeddi jaggarao (Expert) 14 April 2016
If you are willing to pay the principal and interest actually to be paid, I think, he will agree for it. Make a proposal.